Bitcoin Possible Trend Reversal Near

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Let's look at the weekly chart on the right. The first thing that we can notice is that the TD Sequential (or DeMarks) indicator is showing a red 8, and that a red 9 will form if next week's candle closes below ~$6400. A perfected red 9 would require a candle closing below ~$6150. Either one could trigger enough buying momentum to cause a trend reversal that could put an end to this bear market. Clearly, a perfected 9 would be preferable.

Currently BTCUSD is trading around $6330 and it's sitting on the top of two critical levels that were formed by historical lows. At the same time, we're also at the top of a channel formed by the lows and highs of the current downtrend we've been since May. This "double resistance" above, may cause a rejection that may put us back in the low 6Ks, or perhaps in the upper 5Ks in the next few days.

We've been seeing an increase in volatility and "violence" in bounces and dumps, which quite often have formed long wicks above and below. This points out to an increase in the intensity in the struggle between bulls and bears, and for the first time in several months, the volume in bullish pushes have been matching the volume in bearish dumps, although, it's not quite there yet, it's definitely increasing. More than any other indicator, volume will be the one that tells us when the trend has really reversed.

As far other indicators, we have the Stoch RSI in the overbought zone in the 1D chart, which is also pointing down in the short term. In the weekly chart, this indicator has been in the oversold zone for a several days, and while it could remain there for many more days, it's pointing to a potential strong push upwards at some point in the next couple of weeks.

While TA isn't a crystal ball, we can take that the next week or two will be very interesting, and it may be pointing towards a trend reversal, or at least an attempt to end this bear market.

Whatever the case, I wish all of you the best of luck in your trades.
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